HOUSTON, May 8th (Argus) - US rare earth producer MP Materials increased its production of praseodymium-nickel oxide to 917 metric tons in the first quarter, up 63% year-on-year. It expects the price of heavy rare earth elements used in magnets to decline, while the price of praseodymium-nickel will continue to rise.
MP sold 1,006 tons of praseodymium-nickel oxide in the first quarter, including the first shipment to its latest US customer. The company said on Thursday that it produced nearly 13,000 tons of rare earth oxides during this period.
MP expects the actual price in the second quarter to be around $90 per kilogram, but its public-private partnership with the US Department of Defense will offset any differences between the actual price and the minimum price of $110 per kilogram.
For midstream metal products, MP is discussing with domestic and international partners and is currently using a fee-based processor. The company hopes to continue using this model while exploring other low-cost metalization methods globally.
MP is increasing its magnet production and expects to start increasing magnet revenue in the second half of 2026. It is advancing product development, including new magnet grades and specifications, improving potential chemical compositions, and reducing the content of heavy rare earths in the materials.
The company believes that at least for the next five years, obtaining praseodymium-nickel oxide will still be a "constraining element for economically feasible rare earth magnet production outside China", and that "the price will rise".
MP expects the prices of dysprosium and terbium (heavy rare earth elements used in magnets) to "drop significantly from the current level". The company is not interested in "ownership of upstream projects for heavy rare earths", but focuses on diversifying the raw material supply chain.
MP will commission its heavy rare earth separation line by July and expects to produce dysprosium and terbium later this year. The company plans to produce high-purity samarium oxide, as well as potential gadolinium oxide and other attractive heavy rare earth products.
MP's revenue in the first quarter was $91 million, with a loss narrowed to $8 million, compared to $61 million in revenue and a loss of $23 million in the same period in 2025.
